Europe’s photonics sector is urging Brussels not to sideline photonic chips in the updated EU Chips Act.
Europe’s integrated-photonics industry has called on the European Union to grant a prominent role for photonic chips in the second iteration of the EU Chips Act. “As the rest of the world is investing heavily and attempting to catch up – with aggressive state support that disregards level playing fields – Europe must match this commitment. Without meaningful action, Europe risks forfeiting its strategic position,” reads a white paper coordinated by Photondelta and backed by over eighty stakeholders from across Europe.
The paper posits that the original Chips Act didn’t sufficiently recognize photonic integrated circuits (PICs) as a strategic semiconductor technology, resulting in a lack of support. The 20-percent global market share objective strongly prioritized electronic front-end wafer production while neglecting other parts of the value chain. There was little support for industrialization activities.
The white paper highlights Europe’s strong position in integrated photonics. The continent is home to world-class indium phosphide and silicon nitride platforms, with a network of design houses, foundries and advanced-packaging facilities. This creates a solid foundation for an end-to-end industrial base.
Furthermore, integrated photonics doesn’t follow the same scaling path as traditional semiconductors. Many market segments are less about mass-producing identical chips and more about delivering application-specific solutions. Applications like lidar, miniaturized diagnostics and precision agriculture require flexibility and reliability rather than high-volume manufacturing. This plays to Europe’s strengths in research, high-tech engineering and deep vertical integration, the report argues.
But without targeted investment and strategic alignment, industry leaders warn these strengths could erode, as the US and Asia ramp up their photonics efforts. Hence the call for a dedicated PIC track within the Chips Act 2.0, establishing a long-term, integrated EU strategy for PICs. This strategy should be backed up with predictable funding for industrialization and scaling. Stimulating demand, for example through public procurement, is also a key recommendation.
